GBP/USD retraces UK PMI-backed gains, 1.3320 tested

A spurt of buying interest behind the GBP witnessed in response to stronger UK services PMI data lost steam over the last hour, now pushing GBP/USD back towards 1.33 handle.

GBP/USD pops and drops post-UK services PMI

Currently, GBP/USD trades +0.24% higher at 1.3327, retreating from session highs registered at 1.3375. The cable is seen giving away a part of auspicious UK services PMI-led rally and now inches closer towards 1.33 handle, as the bulls take a pause before the next leg higher.

The retreat in GBP/USD is partly attributed to a minor-recovery seen in the greenback against its major peers, with the USD index now losing -0.19% to trade near 95.70.

The major is likely to remain supported above 5-DMA at 1.3265 on the back of the recent series of upbeat UK fundamentals, which showed that markets have completely brushed-off  Brexit concerns.

GBP/USD Levels to consider                           

The pair has an immediate resistance at 1.3375 (daily high), above which 1.3400 (round figure) would be tested. On the flip side, support is seen at 1.3265 (daily S3/ 5-DMA) below that at 1.3250 (Sept 2 low).